The ABC of Buying Your First Home
Category Tyson Properties
Finding your first dream home is even more thrilling than finding that perfect pair of new shoes! Dream décor, creating your own space, finding the ideal place to chill – that’s what buying your own place is all about.
Tyson Properties’ CEO, Chris Tyson says house hunting is certainly extremely exciting, but buying your first home is not something to run into blindly. It’s probably a good idea to tackle all the technicalities the right way, so you can have peace of mind as you add those special touches.
He suggests starting out just as you would do when buying groceries – make a shopping list. Look carefully at what you want - a studio apartment, a one bedroomed flat, a place with enough room to entertain your friends, somewhere small and convenient because you spend most of your leisure time away from home?
Next, consider where you would like to buy - not only when it comes to an attractive neighbourhood, but in terms of security, where you work, where you shop, where you party and even where most of your friends live.
Keep your list with you as a reminder when you view properties. But remember that you may have to re-assess as you go along, especially when it comes to the many challenges and twists about which first time purchasers usually are not aware of.
For example, do you settle for something smaller in a popular area or something bigger in a lesser location? “Remember that this is your first home and that you won’t stay here forever. Location will always be the prime benefit when selling. Even if you buy something smaller in a good area, you can be confident you’ll get a good return on your initial investment,” says Tyson.
But back to the beginning. Before you begin looking at properties, you need to apply for a home loan so you know what price range you can afford. “Because your home loan is probably the biggest financial commitment you’ll make, it is important to ensure that you’re getting the best bond deal available. That is why you need to look at what a number of different banks can offer,” advises Tyson.
Aware that this is an extremely complicated and time consuming process, Tyson says first time buyers should consider using the services of a bond originator such as Betterbond. “Mortgage origination was created to remove the confusion, delay and hassle from securing a bond to buy a property. Their advisors know the ropes and can offer sound advice. They will also streamline things for you and you won’t need to go through the application programme again and again with each bank.”
Tyson suggests hooking up with close friends and family when you start looking at properties and chatting to those who have recently bought or sold and are familiar with the process. “When buying our first homes, we often let emotions cloud our decisions. Taking a trusted friend or family member along could help you see things that you would otherwise have missed.”
That said, your most important partner when it comes to buying your first home has to be your estate agent. Choose carefully, says Tyson, as this will be the person who is guiding you through the unknown. You need someone you can trust to give you good advice and act in your best interests rather than someone who is simply out to make a sale.
“Look for experience, honesty and knowledge of the local market. Ensure that an agent has a valid fidelity fund certificate. Tyson Properties insists on employing well qualified agents and has a zero tolerance policy when it comes to ethics. However, we believe that choosing an agent is not just about the technicalities, but also about client service. Our agents are there to act as partners for buyers.”
Having come this far, it might seem strange for Tyson to advise prospective buyers to go back to the drawing board, do the sums and decide exactly what they can afford. However, he believes it is important to write down your current monthly net income, your current monthly expenses and any savings that you may have. Look at how much you are currently paying towards rent and then work out a reasonable amount that you could afford to pay on a home loan.
Then, adjust this all over again to make sure that you allow for expenses that are not yet on your list - insurance, maintenance, rates or levies. Also make sure that you have a little over each month to take care of emergencies.
Tyson says that the economic downturn has shown that buying a property is a responsibility and that over extending yourself during prosperous times could mean you stand to lose your new home when times are tough. So make sure that your income can withstand an interest hike or two.
After all that, when you’ve explored all your options, worked your way through the fine print and signed on the dotted line, Tyson is confident that you can settle into your new home knowing that you have made the right choices - with the help of Tyson Properties, of course!
For more information on Tyson Properties, visit www.tysonprop.co.za
Author: Chris Tyson
